Comments for Pete's View - Different View, Better Results http://petemcd.wordpress.com Sales Focused Business Strategies, Business Best Practices, Business Strategic Planning Mon, 28 Sep 2009 01:57:46 +0000 http://wordpress.com/ hourly 1 Comment on Business Best Practice: measure the right things by Brad Fern http://petemcd.wordpress.com/2009/09/21/business-best-practice-measure-the-right-things/#comment-68 Brad Fern Mon, 28 Sep 2009 01:57:46 +0000 http://petemcd.wordpress.com/2009/09/21/business-best-practice-measure-the-right-things/#comment-68 Great article. I am an MBA student and appreciated your insights. Great article. I am an MBA student and appreciated your insights.

]]> Comment on Business Best Practice: measure the right things by petemcd http://petemcd.wordpress.com/2009/09/21/business-best-practice-measure-the-right-things/#comment-67 petemcd Fri, 25 Sep 2009 16:48:47 +0000 http://petemcd.wordpress.com/2009/09/21/business-best-practice-measure-the-right-things/#comment-67 Absolutely, Art, I agree. Managing and measuring your days payable (AP) and receiveable (AR) are crucial and a key way to improve cash flow quickly. As is inventory management. Dell Computer mastered inventory turnover years ago and at times has had a negative turn ratio- amazing. Absolutely, Art, I agree. Managing and measuring your days payable (AP) and receiveable (AR) are crucial and a key way to improve cash flow quickly. As is inventory management. Dell Computer mastered inventory turnover years ago and at times has had a negative turn ratio- amazing.

]]> Comment on Business Best Practice: measure the right things by Art Olsen http://petemcd.wordpress.com/2009/09/21/business-best-practice-measure-the-right-things/#comment-66 Art Olsen Fri, 25 Sep 2009 04:24:04 +0000 http://petemcd.wordpress.com/2009/09/21/business-best-practice-measure-the-right-things/#comment-66 Good article Pete. To expand a bit on your cash flow point, for businesses with accounts receivable and inventory there can be cash flow improvement opportunities there as well. Often both accounts receivable and payable invoices are due 30 days from invoice date. When your customers take longer than 30 days to pay and you have to pay your suppliers in 30 days, your company has to either borrow the cash to pay your suppliers or you have to pull that cash out of your bank account. Work closely with your customers so that they pay you on time and work with your suppliers to get extended terms. Similarly if your company buys inventory for resale monitor your inventory very closely and work to match your inventory buys with customer demands. Also, work with your suppliers to deliver inventory shortly before you need it for your customers. Then work out payment terms as long as possible. The net effect will be to lower the amount of cash tied up inventory, reduce your risk of loss and free up cash for other uses. So look for opportunities on your balance sheet as well as the income statement. Good article Pete.

To expand a bit on your cash flow point, for businesses with accounts receivable and inventory there can be cash flow improvement opportunities there as well.
Often both accounts receivable and payable invoices are due 30 days from invoice date. When your customers take longer than 30 days to pay and you have to pay your suppliers in 30 days, your company has to either borrow the cash to pay your suppliers or you have to pull that cash out of your bank account. Work closely with your customers so that they pay you on time and work with your suppliers to get extended terms.

Similarly if your company buys inventory for resale monitor your inventory very closely and work to match your inventory buys with customer demands. Also, work with your suppliers to deliver inventory shortly before you need it for your customers. Then work out payment terms as long as possible. The net effect will be to lower the amount of cash tied up inventory, reduce your risk of loss and free up cash for other uses.

So look for opportunities on your balance sheet as well as the income statement.

]]> Comment on I’m sorry, your product is no longer economical by Cheri http://petemcd.wordpress.com/2009/08/28/i%e2%80%99m-sorry-your-product-is-no-longer-economical/#comment-54 Cheri Fri, 28 Aug 2009 21:55:11 +0000 http://petemcd.wordpress.com/2009/08/28/i%e2%80%99m-sorry-your-product-is-no-longer-economical/#comment-54 Well said Pete. It's not enough to be "Green" in the environmental sense, we need to find that economic "green" as well. :) I believe we can find solutions that fit both definitions of green! Well said Pete. It’s not enough to be “Green” in the environmental sense, we need to find that economic “green” as well. :) I believe we can find solutions that fit both definitions of green!

]]> Comment on Green Shoots by petemcd http://petemcd.wordpress.com/2009/08/05/green-shoots/#comment-49 petemcd Mon, 10 Aug 2009 17:51:48 +0000 http://petemcd.wordpress.com/?p=221#comment-49 I agree, cash flow is the part of the business to be all over and one can look at how to improve cash flow in a number of areas, the two most obvious being inventory reduction and increased attention to accounts receiveable, that being the business $ you are already waiting to collect on or expecting to bill and follow up on soon. Other areas that are right up there are cutting costs (duh) in all non-esential areas that don't contribute to ROI, and selling assets to gain one time cash infusions. Another, that many people forget because they are just focused on costs, is adjusting your selling model to bring in business with terms that allow for more immediate payment- get creative on the offerings and the customer type. I agree, cash flow is the part of the business to be all over and one can look at how to improve cash flow in a number of areas, the two most obvious being inventory reduction and increased attention to accounts receiveable, that being the business $ you are already waiting to collect on or expecting to bill and follow up on soon. Other areas that are right up there are cutting costs (duh) in all non-esential areas that don’t contribute to ROI, and selling assets to gain one time cash infusions.
Another, that many people forget because they are just focused on costs, is adjusting your selling model to bring in business with terms that allow for more immediate payment- get creative on the offerings and the customer type.

]]> Comment on Green Shoots by Perry T. Sikes Jr. http://petemcd.wordpress.com/2009/08/05/green-shoots/#comment-48 Perry T. Sikes Jr. Mon, 10 Aug 2009 17:40:21 +0000 http://petemcd.wordpress.com/?p=221#comment-48 Hi Pete, You hit this one right on the head. It is amazing how many talking heads you can hear now saying "we have turned the corner, we have seen the worst", I don't think so. If folks are waiting for a quick turn around they may be making a big mistate. Better to take your view and get ready for a long tough haul. The survivors will reap great benefits, but you must find a way to make through. Cash flow is a great place to start, as always, follow the money. Good stuff, Perry Hi Pete,
You hit this one right on the head. It is amazing how many talking heads you can hear now saying “we have turned the corner, we have seen the worst”, I don’t think so. If folks are waiting for a quick turn around they may be making a big mistate. Better to take your view and get ready for a long tough haul. The survivors will reap great benefits, but you must find a way to make through. Cash flow is a great place to start, as always, follow the money.
Good stuff,

Perry

]]> Comment on About Pete by petemcd http://petemcd.wordpress.com/about-pete/#comment-46 petemcd Wed, 01 Jul 2009 03:22:08 +0000 http://petemcd.wordpress.com/?page_id=197#comment-46 James Howard: Great to hear from you. We're coming to Glenora this August- first visit east in ten years. I heard about Fran from my mom. Great guy. You were lucky to have him as a stepfather after your dad died. We'll catch up one of these days...I need your home address, email, cell#, etc. Pete James Howard:
Great to hear from you. We’re coming to Glenora this August- first visit east in ten years. I heard about Fran from my mom. Great guy. You were lucky to have him as a stepfather after your dad died.
We’ll catch up one of these days…I need your home address, email, cell#, etc.
Pete

]]> Comment on About Pete by Howard Richardson http://petemcd.wordpress.com/about-pete/#comment-45 Howard Richardson Wed, 01 Jul 2009 03:05:31 +0000 http://petemcd.wordpress.com/?page_id=197#comment-45 Ebert: Just found your blog through twitter. How is it going? Fran passed on June 5th, same day as my dad! It has been a long time. I look forward to catching up soon. JR Ebert:

Just found your blog through twitter. How is it going? Fran passed on June 5th, same day as my dad! It has been a long time. I look forward to catching up soon.

JR

]]> Comment on 2 words by petemcd http://petemcd.wordpress.com/2009/06/10/2-words/#comment-31 petemcd Wed, 10 Jun 2009 21:20:39 +0000 http://petemcd.wordpress.com/?p=142#comment-31 Thanks, RJ. It really is simple advice. Thanks, RJ. It really is simple advice.

]]> Comment on 2 words by RJ McHatton http://petemcd.wordpress.com/2009/06/10/2-words/#comment-30 RJ McHatton Wed, 10 Jun 2009 18:44:11 +0000 http://petemcd.wordpress.com/?p=142#comment-30 Great article, Pete. Very good reminder. Great article, Pete. Very good reminder.

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